UK Defence Intelligence analyses data on record losses for Russia’s Gazprom
Pravda Ukraine
UK Defence Intelligence has focused its review on information about the unprecedented financial losses of Russian state-owned firm Gazprom.
Source: UK Defence Intelligence review dated 12 May on Twitter, as reported by European Pravda
Details: The analysts recalled that Gazprom has reported its highest annual loss in the previous 25 years. Gazprom’s revenues plummeted by around 30% in 2023, resulting in an annual net loss of approximately US$6.9 billion.
As indicated in the report, Russia’s invasion of Ukraine in 2022, and the consequent deterioration of relations with the West, “has severely constrained Gazprom’s operations”.
The UK analysts believe that a complete reorientation of Gazprom’s exports from European markets will continue to constrain its profitability until at least 2030.
Although Gazprom was able to redirect some of its flow to alternate markets due to infrastructural constraints, the assessment estimated that these would account for only 5 to 10% of lost European sales in 2023.
The review suggests that future revenues will be determined by the installation of new infrastructure, such as the Power of Siberia 2 gas pipeline.
The high taxation of Gazprom’s revenues in 2022 and 2023 has very probably decreased the company’s options and incentives to invest in expanding into new markets.
Gazprom paid over US$28 billion into the Russian budget in 2023, accounting for almost 9% of the Russian Federation’s total budget income, according to UK intelligence.
The Russian government intends to increase Gazprom’s tax burden in 2024, which is likely to have affected Gazprom’s decision to lower its 2024 investments by approximately 15%, according to the UK intelligence service.
A past review referred to numerous incidents of munitions being released from Russian aircraft on its own territory pointing to a systemic problem that poses a great threat to the Russian civilian population.
Prior to that, UK Defence Intelligence analysed the impact that the losses of the Russian army in the war against Ukraine had on the 9 May parade in Moscow.
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